Asian Angle | Chinese workers in Brunei live in their own little bubble. That’s a missed opportunity
- Chinese workers, many on belt and road projects, rarely interact with Brunei locals due to their living arrangements and the language barrier
- Several Chinese firms have initiated efforts to better integrate their workers into Bruneian society, which could yet help boost bilateral ties
However, a surge in Chinese investment into Brunei has yet to translate into stronger bonds between the people of both countries within the sultanate, as transient Chinese workers typically live in a bubble separate from the Bruneians.
Situated in the heart of Southeast Asia, Brunei enjoys a favourable geographical location and a stable political regime, making it an attractive investment destination for China.
Next month, Brunei and China will mark the fifth anniversary of their strategic cooperative partnership. Brunei has been a strong supporter of the Belt and Road Initiative, as underscored by the establishment of the Brunei-Guangxi Economic Corridor in 2014. China is also one of Brunei’s largest sources of foreign direct investment and is its third-largest trading partner. Last year, bilateral trade rose 7.5 per cent to a record US$3.08 billion – a 200-fold increase since 1991.
Currently, it is estimated that there are 42 Chinese enterprises operating in Brunei, employing around 1,500 Chinese workers. These Chinese enterprises fall into two categories: sole proprietorships and joint ventures. The former mainly consists of subsidiaries of Chinese private or state-owned companies, while the latter comprises large Chinese private and state-owned enterprises working in joint ventures with Brunei’s government-linked investment funds and agencies.
Most Chinese foreign direct investment in Brunei comes from smaller companies, particularly in sectors such as trading, logistics, fisheries and construction.